Aug 11 (Reuters) - Gold prices edged lower on Wednesday, pressured by a stronger dollar and a rise in bond yields, while investors cautiously looked forward to U.S. inflation data that could influence the Federal Reserve’s timeline to taper monetary support. FUNDAMENTALS * Spot gold was down 0.2% at $1,725.98 per ounce by 0048 GMT, while U.S. gold futures fell 0.2% to $1,728 per ounce. * The dollar index held firm near three-week high against its rivals, making gold more expensive for holders of other currencies. * U.S. Treasury yields hit their highest levels since mid-July after the U.S. Senate passed a massive infrastructure bill. Higher bond yields increase the opportunity cost of holding non-interest bearing gold. * The Democratic-controlled U.S. Senate on Tuesday passed a massive infrastructure bill and immediately kicked off debate on a $3.5 trillion spending blueprint. * Wall Street rose, with both the blue-chip Dow and benchmark S&P 500 closing at record highs, as economically sensitive value stocks gained with the U.S. Senate’s passage of a $1 trillion bipartisan infrastructure package. * Investors now await the monthly U.S. personal consumption report due later in the day to gauge inflationary pressure. * The current inflation spike shouldn’t push the Fed to tighten monetary policy prematurely, with more months of labour data needed before any changes, Chicago Fed president Charles Evans said. * Indications in recent days of an improving labour market has raised fears of a sooner-than-expected U.S. interest rate hike, sending gold prices to a four-month low on Monday. * Gold is viewed as a hedge against higher inflation, but a Fed rate hike would dull bullion’s appeal as that would increase the opportunity cost of holding the non-yielding metal. * Silver eased 0.1% to $23.29 per ounce. Platinum rose 0.7% to $1,001.92 and palladium was steady at $2,640.75. (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich) Our Standards: The Thomson Reuters Trust Principles.